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/ January 2024
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DOI: https://doi.org/10.34069/AI/2024.73.01.25
How to Cite:
Gorokhova, T., Kravchenko, M., Muterko, H., Korostova, I., & Lukash, M. (2024). Exploring the integration of circular economy
and digitalization: current research progress and trends. Amazonia Investiga, 13(73), 297-306.
https://doi.org/10.34069/AI/2024.73.01.25
Exploring the integration of circular economy and digitalization:
current research progress and trends
Explorando la integración de la economía circular y la digitalización: avances y tendencias actuales
de la investigación
Received: December 21, 2023 Accepted: January 27, 2024
Written by:
Tetiana Gorokhova1
https://orcid.org/0000-0003-0435-5047
Maryna Kravchenko2
https://orcid.org/0000-0003-2185-178X
Hanna Muterko3
https://orcid.org/0000-0002-1300-6650
Irina Korostova4
https://orcid.org/0000-0002-5539-4620
Mykhailo Lukash5
https://orcid.org/0009-0002-8926-0396
Abstract
The European Union robustly advocates the
circular economy model as a foundation for
sustainable business growth. However, the
adoption rate by businesses remains tepid.
Simultaneously, the Fourth Industrial Revolution
underscores digitalization's potential for
transformation. Many studies point to the role of
digital tools in accelerating the circular economy.
However, the nexus between digital technology
and circular economy principles is a budding and
rapidly evolving academic area. While ample
research addresses digitalization and the circular
economy independently, holistic studies merging
the two are limited. This article aims to dissect
the current trajectory and future directions of
research that integrates both domains, offering
deep insights for subsequent scholarly
explorations. We employed a bibliometric
approach, extracting literature chiefly from the
1
PhD, Associate Professor, Centre for Advanced Internet Studies, Bochum, Germany. WoS Researcher ID: E-9884-2016
2
PhD, Associate Professor, Transport Management and Logistics Department, Educational and Scientific Institute of Economics and
Management, Priazovsky State Technical University, Dnipro, Ukraine. WoS Researcher ID: KBB-0968-2024
3
PhD, Associate Professor, Department of Enterprise Economics, Priazovsky State Technical University, Dnipro, Ukraine.
WoS Researcher ID: HJY-5807-2023
4
Candidate of Economic Sciences, Department of Marketing and Business Administration, Educational and Scientific Institute of
Economic and Management, Priazovsky State Technical University, Dnipro, Ukraine. WoS Researcher ID: AAL-3821-2021
5
Postgraduate Student, Educational and Scientific Institute of Economics and Management, Priazovsky State Technical University,
Dnipro, Ukraine. WoS Researcher ID: ISA-8429-2023
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Web of Science database and applying
VOSviewer software for keyword association
visualizations. Our analysis encompasses varied
aspects, from publication trends to
interdisciplinary intersections and practical
implementations.
Keywords: innovations, technology integration,
collaborative methodologies, digitalization,
circular economy, economic paradigms,
emerging information technology, strategic
blueprints, progress, trends, advanced data
analytics.
Introduction
The traditional economic paradigm is increasingly
viewed as ill-equipped to craft a forward-thinking
society. Overconsumption of vast natural resources
has led to unforeseen and largely irreversible harm to
both local ecosystems and the wider environment.
Instead of elevating living standards, an expanding
portion of the world's populace is fraught with
uncertainties about the future. Given this context, the
global discourse has pivoted towards sustainable
development, perceived as the new road map to
foster societal advancement. The circular economy is
gaining traction as a potent strategy to embody the
tenets of sustainable development, presenting an
alternative to the conventional economic system by
emphasizing resource renewal and prudent
utilization (Murray et al., 2017).
The genesis of the phrase "circular economy"
remains a topic of discussion. The circular economy
is a production model that emphasizes the reuse of
materials and the efficient consumption of natural
resources (Greyson, 2007; Boulding, 1996).
Thanks to this approach, a cyclical production
process is achieved, maximizing the use of
materials, and extending the product lifecycle (Liu
et al., 2009; Yuan & Moriguichi, 2008). While the
term "circular economy" is subject to varying
interpretations, it's commonly perceived as a broad
concept depicting a cyclical, self-sustaining system
(Murray et al., 2017; Pearce &Turner, 1990).
In the modern era, the idea of a circular economy
garners support from a lot of countries such as
the European Union (EU), the United States of
America (USA), the United Kingdom (UK), Asia
countries, and numerous global businesses. The
shared belief is that mutual efficacy is
instrumental in guiding sustainable growth for
enterprises (Hammer & Pivo, 2017). Such
progression is attainable through integrating
innovative business approaches and cultivating a
sense of ecological responsibility.
Embracing the tenets of the circular economy
comes with its set of hurdles. One prominent
issue is the shifting of operational risks squarely
onto the companies (Neely, 2008). When
products are retained by businesses instead of
consumers, there's a surge in upkeep expenses
which may deter some customers (Rizos et al.,
2016). Additionally, products designed for
longevity in the circular economy, having
elongated update cycles, may not align with fast-
evolving technologies, potentially stalling
advancements. As noted by Nobre (2017), the
cyclic or closed-loop approach is gradually
reshaping the dominant linear economic mindset.
The traditional linear approach follows a pattern
of produce, use, and discard. However, the
circular framework upholds the 3-R ethos: 1)
minimizing resource usage with a focus on
renewables; 2) repurposing items to ensure
optimal use; and 3) recycling, channelling waste,
and residuals back into the economic stream
(Millar et al., 2018).
The rapid strides in digital technology are widely
acknowledged for their game-changing potential,
often being hailed as the bedrock of the fourth
industrial revolution (Bressanelli et al., 2018).
Concurrently, the affordability and ubiquity of
digital information and communication
technologies (ICTs) have popularized the use of
mobile computers, communication gadgets,
global positioning systems, and the Internet.
Notably, the Internet stands out as the linchpin of
digitalization (Sturgeon, 2021). The foundational
technologies and platforms propelling
digitalization offer immense opportunities to
boost productivity and enhance the global
Gorokhova, T., Kravchenko, M., Muterko, H., Korostova, I., Lukash, M. / Volume 13 - Issue 73: 297-306 / January, 2024
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interconnectivity of consumers, workers,
companies, and related sectors. Furthermore,
they present robust instruments to foster
innovation even in the most remote areas
(Sturgeon, 2021). Thus, digital evolution is
characterized by a fusion of advanced ICTs,
digitalized knowledge, and web-based data,
casting its influence over a vast spectrum of
industrial and societal facets within the global
landscape.
Furthermore, digital technology plays a pivotal role
in bolstering the incorporation of the circular
economy in enterprises (Bocken et al., 2016).
Consider the Internet of Things (IoT) as an
example. It equips businesses with the capability to
remotely monitor live data related to their products
usage, condition, and location (Baines & Lightfoot,
2014), track materials throughout their life cycle
using IoT tools, and facilitate the refurbishment of
outmoded items. These innovations set the stage for
a transition to a circular economy (Lewandowski,
2016).
In the realm of digital transformation, integrating
process analysis with thorough data evaluation
results in significant improvements in the
management of storage, sales, and the
performance of economic actions across varied
sectors, technologies, machinery, products, and
services (Liu et al., 2021). However, it's crucial
to recognize that the intersection of the circular
economy and digital technology is a nascent and
rapidly evolving research area. While abundant
studies focus on the circular economy and digital
economy separately, there's a noticeable gap in
research that interlinks these domains.
Consequently, the purpose of this paper is to
delve into the progress and trends in the
confluence of the circular and digital economies,
providing a foundation for future investigative
pursuits in this specialized domain.
The objective of this research is to offer a
detailed overview of scholarly works pertaining
to Circular Economy (CE). Utilizing the Web of
Science database, the researcher meticulously
selected relevant publications, discarding those
unrelated to the subject. The process involved
sorting, organizing, and graphically displaying
the information, culminating in a clear and
structured narrative. The study poses several
research questions, including:
1. What are the publication trends in CE over
the past ten years?
2. What is the nature of author collaboration in
CE research during this period?
3. What are the trends in CE titles over these
ten years?
Literature review
Naudé (2011) expressed skepticism about the
practicality of implementing Circular Economy
(CE), considering it a challenging and unattained
goal. The corporate sector often struggles with this
implementation, facing hurdles such as:
Physical resources like data, technology, and
fundamental materials;
Non-physical elements including a culture
geared towards data, circular innovation,
transparency, and collaborative creation;
Skillsets related to systems thinking and data
analytics (Kristoffersen et al., 2021; Aksoy &
Hacioglu, 2021).
Despite these challenges, industry professionals
persist in their efforts to incrementally apply CE
principles. Kirchherr et al. (2017) identified CE as
an amalgamation of reducing, reusing, and
recycling practices. Potting et al. (2017) categorized
the transition from a linear to a circular economy
using a scale from R0 (refuse) to R9 (recover).
Carvalho et al. (2020) and Hislop & Hill (2011)
highlighted CE's role in enhancing circularity,
reducing energy and resource usage, and supporting
sustainable resource management. Kirchherr et al.
(2017) further noted that CE aims for long-term
economic growth, environmental conservation, and
social equity, benefiting future generations. CE
encourages sustainable lifestyles and should
influence strategies and policies grounded in
sustainability (Unal et al., 2018). Akkalatham et al.
(2021) discovered a link between recycling
willingness, lean manufacturing, and CE efficacy.
Environmentally responsible practices enhance
productivity and necessitate continuous innovation,
including efficient use of tools like pre-shredders
and power plants, to conserve mineral resources.
Ghisellini et al. (2016) posited that successful CE
implementation would significantly boost
sustainable business and societal outcomes. This
involves resource optimization during production,
distribution, and consumption (Kirchherr et al.,
2017). Kristoffersen et al. (2021) suggested that
managers need to strategically manage industrial
life cycles, focusing on innovation, reduction, and
resource recirculation. Li & Yu (2018), among
others, argued that eco-friendly behaviors within
organizations can positively affect sustainability
across economic, environmental, and social
dimensions.
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Materials and methods
In our research, we utilize a bibliometric analysis
method. This involves extracting relevant articles
from the Web of Science (WoS) database and then
importing them into VOSviewer, a tool tailored for
bibliometric evaluation and keyword depiction.
Bibliometric charts act as a quantitative instrument,
enabling the visualization of bibliometric
characteristics across various scientific papers
through different network structures. This graphical
representation offers insights into the structure and
evolution of multiple research fields (Suryantini et
al., 2021). For this investigation, we source data
from the WoS core collection, centering our
research on the phrases "circular economy" and
"digitalization". We employ the VOSviewer
software, a freely available tool introduced in 2009
by Van Eck & Waltman (2010) at Leiden
University's Centre for Science and Technology
Studies (CSTS) in the Netherlands, to perform a
keyword co-occurrence assessment of the selected
literature. This approach, focusing on keyword
overlap, has been applied in diverse areas from
healthcare (Yeung et al., 2021) to elderly
community engagement and crisis response (Fu et
al., 2020). Keywords act as prisms, honing in on
central themes and topics within a field's body of
literature. They can highlight dominant research
areas and unfolding patterns (Huang et al., 2020).
As such, we use VOSviewer in our research to
conduct a keyword co-occurrence evaluation,
aiming to explore the relationship between the
circular economy and digitalization.
The methodology applied in this research is laid
out systematically, as delineated in Table 1.
Table 1.
The structure of the research methodology.
Stages of research
Content
Data sorting from WoS using search
subject “circular economy and
“digitalization”
Categorising 1855 relevant scientific articles from 2015 to the first
quarter of 2023 including key words, author, year, research methods,
content.
Analysing the publication of circular
economy and digitalization sphere
To examine the trends in published articles focused on the circular
economy and digitalization over different years, a bar chart analysis was
conducted.
VOSviewer analysis on “circular
economy” and “digitalization”
VOSviewer was employed to conduct a comprehensive analysis of keyword
co-occurrence using articles sourced from the Web of Science (WoS). This
analysis aimed to reveal the status and future directions within the field. The
first aspect of the analysis involved keyword analysis, where the frequency
and relationships of keywords were examined. Additionally, overlay
visualization analysis was performed to identify the connections and overlaps
between different sets of keywords.
Multidisciplinary research
To further analyse the status and future directions of the subject areas related to
the research, a classification and selection process was conducted using keyword
co-occurrence analysis in VOSviewer.
The research approach is articulated through four
clear stages:
1. Identifying the core research focus and
gathering articles related to the circular
economy and digitalization. This involves
organizing and systematically compiling all
relevant information.
2. Utilizing bar graphs and pie charts to
document and showcase the sources of
publications that touch on the circular
economy and digitalization, providing a
comprehensive perspective on the origins of
these works.
3. Undertaking keyword co-occurrence
analysis using VOSviewer. This involves
crafting visual mappings of keyword links,
highlighting the most prevalent keywords,
creating visualization overlays, and
identifying emerging research terms.
4. Pursuing interdisciplinary explorations by
investigating various thematic areas within
the WoS database. This entails selecting
specific thematic sectors and executing
keyword co-occurrence analyses specific to
each selected area.
These stages form the foundational structure of
our research approach, equipping us with the
means to deeply analyze and grasp the nexus
between the circular economy and digitalization.
Results and discussions
The information used in this research was derived
from the Web of Science (WoS) core collection. By
centering the search on circular economy and
“digitalization, we obtained a total of 1855 articles
spanning from 2015 to the first quarter of 2023.
Figure 1 visually represents the upward trend in the
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quantity of articles centered on "circular economy"
and "digitalization" over the years. Starting with a
humble 12 articles in 2015, the count rose
dramatically to 600 by 2022. This rising trend
indicates a consistent and growing academic
curiosity in this area, signaling its potential
significance in upcoming academic pursuits.
Figure 1. Numbers of scientific papers on "circular economy" and "digitalization" published from 2015 to
the first quarter of 2023 as documented in the Web of Science.
The initial step involved importing all the articles
into the VOSviewer software to generate a term
map for the keyword co-occurrence analysis.
This evaluation covered 431 keywords, with each
appearing at least three times. Out of these, 59
keywords met the set threshold and were chosen
for a detailed study, visualized using both
network and overlay representations.
Within the network view, the visualization
included textual labels, circles, connections, and
various colour segments. Based on the software's
standard settings, individual items were
represented by labels and circles. The size of the
label and circle indicated the significance or
weight of the item. The closeness or strength of
the connections between items indicated their
shared significance or relation (Li et al., 2016).
Separate clusters were marked by unique colour
hues.
As illustrated in Figure 2, the VOSviewer
produced six separate colour regions, each
signifying a unique cluster. Cluster 1 was
predominantly linked with business-oriented
terms such as economic growth, digitalization,
servitization, co-created value, and consumers.
Cluster 2 delved into tech-centric terms like
digital tech, IoT, and blockchain. Cluster 3
covered themes like industrial symbiosis, the
sharing economy, innovation, and structure.
Cluster 4 revolved around sustainability
concepts, featuring terms like strategic planning,
supply chain oversight, and modelling. Cluster 5
touched on managerial elements in economic and
tech realms. Finally, Cluster 6 focused on life
cycle oversight, tackling subjects like design
approaches, recycling methods, and waste
handling.
Figure 2. Keyword network visualization of “circular economy” and “digitalization” from year 2015 to the
first quarter of 2023 via VOSviewer.
12 24 32 67 122
236
456
600
306
0
100
200
300
400
500
600
700
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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Within the identified clusters, chief keywords
central to discussions about the circular economy
and digitalization include terms like circular
economy, digitalization, industry, waste
management, artificial intelligence, and
technology. These keywords encapsulate the
primary themes emerging from the keyword co-
occurrence assessment using VOSviewer.
Table 2 provides a breakdown of the most
frequently referenced keywords from the analysis.
These terms make at least ten appearances and
come with attributes such as their colour
designation, related cluster, frequency of mention,
and overall link strength. This table serves as a
snapshot of the core terms intertwined in the cross-
disciplinary exploration of the circular economy
and digitalization, emphasizing their significance
and consistent reference in scholarly literature.
By deploying the overlay visualization
technique, we can extract pivotal insights about
the primary research themes over different
periods, paving the way for understanding
potential future research directions. Figure 3
presents a visual depiction of keywords from all
the literature examined in this study, covering
from 2015 to the early part of 2023. The array of
colours in the graphic denotes the chronological
order, initiating with shades of purple and
transitioning through hues of blue and green,
ultimately reaching yellow. This colour
transition reflects the journey from the initial
stages of research to the most up-to-date
findings.
Table 2.
High-frequency keywords “circular economy” and “digitalization” from year 2015 to the first quarter of
2023 via network visualisation of VOSviewer.
Colour
Cluster
Keyword
Occurrence
Total Link Strength
1
Digitalisation
6
26
2
Circular economy
41
110
3
Industry
11
54
4
Waste management
11
49
5
Artificial intelligence
5
31
6
Technology
11
44
By examining the overlay visualization,
researchers can gain a comprehensive
understanding of the temporal distribution and
development of research topics within the field
of interest. This visualization aids in identifying
emerging trends, shifting focuses, and potential
areas for further exploration in future research
endeavours.
Figure 3. High-frequency keywords “circular economy and “digitalization from year 2015 to the first quarter
of 2023 via network visualization of VOSviewer.
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The following are the summarized hot research
keywords within the field of circular economy
from the years 2015 to the first quarter of 2023:
1. Business-related keywords: This scheme
encompasses keywords such as business
models, servitization, value co-creation, and
consumer behaviour. These keywords
highlight the growing interest in developing
innovative business models that promote
circular economy principles, emphasize
value creation, and involve active
participation from consumers.
2. Keywords cantered on technology: This
category encompasses terms such as digital
technologies, internet of things (IoT), and
smart producing. These keywords indicate
the significance of technological
advancements in driving circular economy
initiatives, particularly in areas such as
digitalization, automation, and efficient
resource management.
3. Sustainability-related keywords: Keywords
within this scheme revolve around
sustainability strategies, supply chain
management, and sustainable business
practices. These keywords underscore the
importance of incorporating sustainable
practices into circular economy frameworks,
ensuring responsible resource management
and minimizing environmental impact.
4. Circular waste management keywords: This
scheme comprises keywords like waste
management, recycling, and waste-to-
energy. It highlights the growing emphasis
on effective waste management practices,
including recycling and the conversion of
waste materials into valuable resources, as
crucial components of circular economy
strategies.
5. Emerging technology keywords: This
scheme includes keywords such as AI and
blockchain, indicating the rising interest in
leveraging advanced technologies to
enhance circular economy practices. AI and
blockchain have the potential to optimize
resource utilization, trace product lifecycles,
and enable transparent and efficient supply
chains.
In the current research hotspots of the first quarter
of 2023, the keywords “big data” and “supply
chain management” have emerged with higher
frequency, suggesting their prominent presence
and potential strong connections within the
research field. This indicates that these topics have
attracted significant attention and have been
extensively studied. Additionally, keywords such
as barriers”, impact”, and “performance” are
also frequently mentioned, further emphasizing
their relevance and significance within the current
research landscape.
On the other hand, certain keywords like “artificial
intelligence, “demolition waste, “consumer
behaviour, “life cycle assessment”, “climate
change, and “BIM appear less frequently,
suggesting that they may have untapped research
potential. These topics hold promise for future
research endeavours as they offer opportunities for
new insights and advancements in the field of
circular economy and digitalization.
The topic of circular economy and digitalization
is characterized by its multidisciplinary nature,
encompassing various subject areas. The main
fields that contribute to this topic are digital
technology and environmental science.
The integration of these disciplines is crucial for
advancing circular economy practices and
achieving sustainable implementation strategies.
By integrating knowledge from both digital
technology and environmental studies, scholars
can craft pioneering business strategies, devise
impactful policies, and accelerate the shift
towards a circular economy.
It enables the exploration of synergies between
technological advancements and environmental
considerations, fostering a holistic approach
towards sustainable development. By bringing
together expertise from different disciplines,
researchers can develop comprehensive solutions
that promote circularity, resource efficiency, and
choosing effective business model and economic
system.
Conclusions
The aim of this study is to revolves around
probing the contemporary research milestones
and trajectories in the nexus of the circular
economy and digitalization. As a part of our
approach, relevant articles were retrieved from
the core compilation of the WoS database and
subsequently underwent VOSviewer analysis for
keyword visualization. This assessment aimed to
discern the intertwined relationship between the
circular economy and digitalization. From this
inquiry, three salient revelations emerged:
1. The leveraging of the VOSviewer
bibliometric method enabled a
comprehensive keyword co-occurrence
investigation, shedding light on co-
occurrence clusters, primary research
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themes, and keyword evolution trends linked
to "circular economy" and "digitalization."
2. An encompassing scrutiny of articles across
diverse academic fields and publications
highlighted the interdisciplinary nature of
this research topic.
3. The identification of existing research gaps
and burgeoning trends, offering a roadmap
for future scholarly pursuits, stands to
benefit a wide audience, ranging from the
general populace and policy shapers to
academic researchers.
Moreover, the intertwined network of terms
closely associated with the circular economy and
digitalization includes keywords such as
sustainability, Industry 4.0, design, management,
and framework. These terms illuminate potential
avenues for future research. Key research terms
identified through overlay visualization from
2015 to the first quarter of 2023 can be distilled
into five main themes: collaborative
methodologies, economic paradigms, emerging
information technology, strategic blueprints, and
advanced data analytics. These themes provide a
roadmap for upcoming scholarly pursuits.
A limitation of this study is its singular focus on
the WoS database. There's a likelihood that other
significant publications may be indexed in other
databases like Scopus or Google Scholar. To
achieve a more encompassing view, subsequent
investigations should consider sourcing from
multiple databases and juxtaposing the outcomes
with the present study. However, amalgamating,
and visualizing data from diverse databases using
VOSviewer could pose challenges, warranting
careful consideration in future research efforts.
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